Tenn. Comp. R. & Regs. 1320-05-01-.53 - LAUNDRIES, DRY CLEANERS, AND OTHER CLEANING TANGIBLE PERSONAL PROPERTY
(1) The washing, drying, or cleaning of any
kind of tangible personal property and sales of any tangible personal property
such as soap, bleaches, etc., and repair or alteration of any tangible personal
property, for use and consumption, are subject to the Sales and Use Tax. This
includes, but is not limited to such articles as clothing, furniture, rugs,
draperies, jewelry, motor vehicles, etc. The receipts from coin-operated
laundry and dry cleaning machines are not subject to tax if the customer
performs all of the activities related to the handling of their clothing. If
the dealer performs any of these services, the receipts are taxable.
(2) The cleaning of real property such as
windows, walls, and wall to wall carpeting in buildings, is not subject to any
Sales or Use Tax. Likewise; charges for storage of and insurance on laundry and
cleaning, and dyeing, blocking, and pressing only, are not subject to the Sales
or Use Tax, provided such charges are stated separately on a ticket, statement,
or invoice given to the customer and are accounted for as such on the books and
records of the dealer.
(3) Items of
tangible personal property bought by laundries and dry cleaners which accompany
tangible personal property washed or cleaned for customers, such as
identification and packaging supplies, and items bought for resale, such as
soap, bleach, and repair supplies, may be bought on a resale certificate
without Sales or Use Tax. Items of tangible personal property which do not
accompany tangible personal property washed or cleaned for customers, and all
items used to wash or clean real property, such as equipment, public utilities,
and cleaning agents, are subject to the Sales or Use Tax.
Notes
Authority: T.C.A. ยงยง 67-1-102 and 67-6-402.
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